C h r i s t m a s
E d i t i o n
Commercial &Residential
Investing
Signature Project: Commercial
Airport Business Complex Philadelphia PA Originally settled by colonial Swedes in 1643, TinicumTownship known as Tinicum Island is the site of the first permanent European settlement in Pennsylvania. One of the last large rural townships between Philadelphia & New York encompassing over 30 square miles, “The Island” has a strong agricultural history and is home to the John Heinz National Wildlife Refuge at Tinicum, attracting visitors year-round. This predominantly “blue collar” and agricultural river bank region is preparing for an era of abundance. History will soon combine with modern technological advances, as some of the country’s top businesses will take up residence & operate within the spacious confines of the Airport Business Complex. Originally built in 1945, the property is situated on over 144 acres of prime real estate. 49 acres previously determined as excess has been leased to Federal Express Ground who will build a new industrial complex to serve as their eastern seaboard hub. There are 33 buildings in the complex currently offering over 1.5 million square feet of net rental area.
Highlights • 144.38 Acres of total land area • 33 buildings that offer 1,535,023 sq. ft of net rentable space • 83% industrial area & 17% office
From the Desk of Sam Ally
Families Growing Their Wealth Together A
s Vice President of Business Development I meet and speak with Investors, Wealth Managers and other industry professionals around the U.S. and abroad. It’s my job to identify investor trends to help us stay ahead of market conditions; where they invest, what they invest in and more specifically who they invest with and why. At a recent mastermind session we discussed the strategy and importance of forging Strategic Alliances, and the long term benefits of doing so. As entrepreneurs & businesses continue to leverage each other’s strengths, there’s a hot new trend coming out of family and wealth management offices around the country. Families across the U.S. are combining their funds and resources to grow their portfolios, and in many cases start building a real estate portfolio. They believe that the market is bottoming out and acquiring real estate or “hard assets” now will create the foundation for a successful and long term investment plan.
As our mastermind discussion continued, we identified several benefits associated with what we’ve now come to know is, the “Individual Joint Venture.” Some of those benefits include: • Multiple Acquisitions • Larger Acquisitions • Cash Flowing Acquisitions • Complete Check Book control of their Money Clubs, networking events and forums are being formed (Strategic Alliances) to recruit additional partners and identify all available resources and opportunities to ensure their long term success. It’s no longer just one deal. It is about multiple acquisitions, diversification, taking control of their financial futures. There are pitfalls, of course (t hus t he need for consultants).
Families with experience in the real estate market sector, who are now managing the money of other careful investors want, actually need to put structure and controls in place. They also need to figure out how to report to their new partners. Passive and active investors alike need to know typical terms and protect themselves and their assets legally. Families without real estate holdings as well as those with underperforming retirement savings vehicles (401K, IRA, CD’s, Mutual Funds) see the opportunity here too, of course. They want to align themselves with smart, experienced investors and groups that have the systems, expertise and opportunities they seek. These same investors and families are now choosing HIS Capital Group as their resource and investment portal because of our: Sound value based investment strategies, reporting that provides complete transparency and accountability, along with over 110 years of combined real estate expertise. Our business continues to grow and in large part due to the Alliances we’ve establish along the way. If you haven’t talked with us yet about your investing goals, perhaps, learning why Dave Cole Nationally recognized retirement consultant and Solo 401 K expert refers his clients to us:
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During the last fifteen years of working with real estate investors I find a common challenge that almost everyone voices. Where can I find genuine investment opportunities from reliable sources? I have no reservations whatsoever in recommending HIS Capital Group. The company remains true to its core values; treating each investor with respect, providing full disclosure and remaining 100% transparent so the investor is always up to date on the progress of each project. The last few years has taught everyone a valuable lesson. You must become a good steward of your own money. This means taking back control of both your money and your investment choices. I have no doubt that after you explore all that HIS Capital Group has available and their blue ribbon standard of doing business that you will be pleased to add their products to your portfolio. Dave Cole from Personal Success Planning, LLC
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If you would like to learn more about an individual Joint venture, I can be reached Direct at 407-494-3329. Wishing You and Yours a very Merry Christmas and a Happy, Healthy and Prosperous New Year! Sam Ally
Progress Report
Talking Hands, Listening Eyes O
ur investment approach is fueled by our Core Beliefs. We believe in the power of "sowing seeds and reaping a harvest." Empowering passive investors to create generational wealth, while inspiring them to pursue philanthropic endeavors across the globe is our mission. In the true spirit of the Holiday Season, it is with great pleasure we bring you the first in a series of articles about our “Why” & introduce you to our Director of Philanthropic Activity, Rochelle Melero. Letter from Friends As an organization we believe in the importance of not only being a good steward of finances but also being a good steward of our time and resources to influence and feed nations. To encourage and foster the spirit of “good will”, over the coming months I hope to provide a glimpse into the lives we have encountered along the way. Recently I received an update from our dear friends Len and Migdalia Morales who created the school Talking Hands, Listening Eyes in Consuelo, Dominican Republic because there was no school in the area for the deaf. The following is a brief excerpt from their correspondence: “Consuelo is located in the Southeast part of the Dominican Republic; it has a population of approximately 65,000 people. The exact percentage of deaf people in the Dominican Republic is unknown because the government has not completed a census but Google reports it as a staggering rate of 10%. Some of the causes of deafness: hereditary, poor prenatal care, premature delivery, meningitis, some families have 4 and 5 children all deaf or deaf and blind. At one time in the Dominican Republic it was thought that the deaf were academically challenged and unable to be taught. We are proud to announce that after 18 months of preparation the school has opened with 30 in attendance ranging in age from 3 to 38! They are taught how to read, write, and do basic math. Your sponsorship provides them a hot lunch daily, but most importantly makes a lasting investment in their future by ensuring they receive the necessary education that will allow them to communicate with others.” One person can make a difference, to learn more about our philanthropic pursuits or to Sponsor a Student, please contact me at 877-452-6569 x 105. Have a Merry Christmas & a Happy New Year, Rochelle Melero www.talkinghandslisteningeyes.com
From the Desk of Rick Melero
What does history tell us about real estate and business?
D
uring uncertain economic times, many investors tend to allow fear and emotions to dictate the actions they take leading to decisions that can hinder their ability to capitalize on unique opportunities. These investors generally follow the “herd” because they don’t understand the history of real estate and business cycles. In these times however, there are also “pioneers” who are students of the lessons taught by history; positioning themselves to capitalize on the opportunities during the life time of those opportunities. Let me take you back through time to give you some perspective. Ladies and Gentlemen meet, John Jacob Astor:
John Jacob Astor was an American business man, merchant and investor who was the first prominent member of the Astor Family (Waldorf Astoria Hotel) and the first multi-millionaire in the US. Born July 17th 1763 he became the first multi-millionaire in the US. When he moved to the US, he built a fur-trading empire that extended throughout the Great Lakes region and Canada, later expanding into the American West and Pacific Coast. In the early 19th century he diversified his business ventures into New York City real estate. In the 1830s, John Jacob Astor foresaw that the next big boom would be the build-up of New York, which would soon emerge as one of the world’s greatest cities. Astor withdrew from the American Fur Company, as well as his other ventures and used his fortune of $250,000.00 to buy and
develop large tracts of Manhattan real estate that ultimately grew into $20 Million dollars by the time of his death in 1848. Predicting the rapid growth northward on Manhattan Island, Astor purchased more and more land beyond the current city limits. Astor rarely built on his land, and instead let others pay rent to use it. Using this real estate strategy (which is now commonly referred to as “Buy n Hold”) to build his wealth, his $20 million dollars was the equivalent of 1/107 of the US Gross National Product at the time. The Gross National Product is the market value of all products and services produced in one year by labor and property supplied by the residents of US. In 2010, the US Gross National Product (GNP) was $14.6 Trillion so if we were to measure Mr. Astor’s wealth as a percentage of GNP being 1/107 or .93% it would be well over $100+ Billion dollars making him the 3rd richest person in American history. Using History as our guide, we have concluded that one consistent trend is evident. Markets will collapse. In fact, since the early 1800s, US real estate markets have experienced a major “Boom” followed by a “Bust” on average every 18.2 years. Let me survey the history of these market corrections. The first American Depression 1819: This crisis resulted from international conflicts such as the Embargo Act of 1812 and caused widespread domestic foreclosures, bank failures, unemployment and a slump in agriculture and manufacturing. This panic came right after the end of economic expansion that had followed the war of 1812. The US Government borrowed heavily to finance the war of 1812 which caused tremendous strain on the banks’ reserves. The Panic of 1837: This financial crisis or market correction was built on a speculative fever. Some causes include the economic policies created by President Andrew Jackson (“I killed the bank” President), who refused to renew the charter of the 2nd Bank of the US. (FEDERAL RESERVE). Most of the blame is linked to the Banks for funding speculation and for the introduction of excessive paper money (not backed by gold/silver). Sound familiar? The Panic of 1857: This panic was caused by the declining international economy and over-expansion of the domestic economy. It all started in Britain in 1844 when British banks gave exclusive note-issuing powers to the Central Bank of England without gold
or silver backing. The years before the panic of 1857 were very prosperous, many banks, merchants and farmers had seized the opportunity to take risks with their investments and as soon as market prices began to fall they then began to experience the effects of a financial panic. Long Depression of 1873 -79: (and longer in some other countries). Known as the Great Depression until well into the crash of 1929; now known simply as the Long Depression. Caused by the fall in demand for silver internationally which was followed by Germany’s decision to abandon the silver standard. The boom generated before the 1873-1879 bust was generated by the railroad construction after the American Civil war with 33,000 miles of new railroad tracks laid across the country between 1868 and 1873. Economic Depression of 1893: (very similar to the panic of 1873). Again, another eerily similar set of circumstances, the collapse of railroad overbuilding and shaky railroad financing which set off bank failures. The Panic of 1893 was the worst economic depression the US had ever experienced at the time.
Great Depression of 1929: In most countries started in 1930 and lasted until the late 30s and middle 40s., In the US it started after the passage of SmootHawley Tariff which was an act sponsored by Senator Smoot and Representative Hawley to raise US Tariffs on over 20,000 imported goods to record levels. Black Tuesday became known worldwide for the stock market crash of October 29th, 1929. Once again, an all too familiar course of events takes place. Devastating effects in countries rich and poor; Personal income, tax revenues, profits and prices dropped, while international trade plunged by more than 50% due to the Tariffs. US unemployment rose to 25%. Bust of 1974: although there was no severe economic depression as witnessed in the 1930s, economic growth rates were lower than in previous decades. I am confident many of you remember experiencing high double digit inf lation, high unemployment and double digit interest rates. Economically the 1970s were marked by the energy crisis which peaked in 1973 and 1979. Remember “Odd-Even” days at the local gas stations? Can you see a trend? Now armed with the power of this information, look back at the times when John Jacob Astor decided to invest in real estate and you will learn that he became most bullish as he saw the markets declining and while everyone else followed the “herd” of fear, he became a “pioneer”. Now as then, savvy investors and entrepreneurs alike have embraced the lessons of history and positioned themselves accordingly to capitalize on the incredible opportunities of today. Many of these savvy “pioneers” have formed alliances with our organization. Whether you do business with us, or go out on your own, we encourage you to remove fear out of the equation and become a pioneer.
Merry Christ mas & Happy New Year
Merry Christ mas & Happy New Year!
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